Journal of
Development and Agricultural Economics

  • Abbreviation: J. Dev. Agric. Econ.
  • Language: English
  • ISSN: 2006-9774
  • DOI: 10.5897/JDAE
  • Start Year: 2009
  • Published Articles: 549

Article in Press

Determinants of Market Exit Choice among Small Beef Cattle Producers: Evidence from Ethiopia's West Hararghe Zone

Adunea Dinku

  •  Received: 18 December 2019
  •  Accepted: 19 June 2020
Choosing the appropriate marketing channels from existing ones to distribute agricultural production is not a simple task, as there are a number of factors that influence producers to choose such relevant channels. Thus, the present study was designed to examine the factors affecting the choice of market exit among small producers of beef cattle in the West Hararghe area of Ethiopia. The multistage sampling technique was used to select 171 cattle ranchers to collect primary data through semi structure questionnaires. Secondary data were also collected to corroborate the primary data. Descriptive statistics, inferential statistics and econometric model (Multivariate Probit Model) were used for data analysis. The study identified farmers' traders (local collectors), small traders, large traders and consumers as the main exit from the beef cattle market. Thus, the probability of choosing a consumer as a point of sale is relatively low (16.39%) in relation to small trades (28.46%), large traders (31.21%), and farmers traders (local collectors) (38.53%). The result of the model revealed that the experience of the producers, the contact with the extension, the distance to the nearest market and the access to market information significantly affected the decisions of choice of market exit in one way or another. Therefore, stakeholders should amplify institutions to provide timely and up-to-date market information, road networks and training to a producer.

Keywords: Beef Cattle; Choice of Exit Market; Multivariate probit model; West Hararghe; Ethiopia